The government ensures that the local people find enough employment opportunities. The problem with many countries is that they cannot provide their people ample employment opportunities. It is not uncommon to find many educated and skilled persons in developing countries unemployed and desperate to find any job (Mojsovskia,2017). However, government can step in to stop this trend. The government can welcome international businesses and companies to set up branches and employ the local people. Moreover, the international companies can train and foster the establishment of smaller businesses that can then replace the international businesses later. The governments that ensure that foreign trade helps the local businesses and employs its people are stronger and functional.
Foreign trade ensures that the skilled and knowledgeable persons in society find space to contribute towards the national income (Gnangnon, 2017). The foreign trade enables local people know how to manufacture or process goods and services. For instance, many individuals in developing countries import and assemble automobile products (Song, 2016). The assembling of these products could not have been possible if governments restrict foreign trade. The people who could not have been fruitful in contributing towards the national cake be very productive. The people can find something to do and avoid being idle and desperate.
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When looked from the social perspective, foreign trade unites people all around the globe. The people from different parts of the world can be united by trade. Trade has the buyers and the sellers. The process of buying goods and services has people conversing and sharing information among themselves. The impact of this is that people will develop relational bonds that end up making the world united and focused on making every person’s life better. The people learn from each other manners, styles of doing things and even perspectives with which they can look at situations. Therefore, governments that encourage and promote foreign trade often have richer and complex cultures than those that rely on domestic trade. The reason for this is that the people have the chance to learn different things from different people from various parts of the world. The people get to know the need to learn and appreciate other people’s cultures. Therefore, the governments that promote foreign trade promote cohesion among people. They look forward to seeing people work together to realize their dreams.
However, there are those who feel that foreign trade kills local businesses and government should do all that is possible to stop it. They have a feeling that foreign trade end up making them poorer and desperate. As a result, they find it uneasy to welcome foreign business persons because they think that the visitors come in to take their jobs and hurt their economy (Gnangnon, 2017). The governments that restrict foreign trade are often not ready to market their products and services. Moreover, they feel inferior to the outside businesses that come to invest in their country. The people cannot think of any positive they can get from the foreign businesses because government make them to imagine that way. Though there are some cases that confirm this fear, it is important to note that this perspective is not only wrong but ineffective. First, it reduces the opportunities for people to find employment. Secondly, it reduces the chances of people getting new and functional ideas and skills from the businesspersons from other countries. Thirdly, it makes it hard for people to works well with others from other countries. The people are made to feel different and incapable to compete with the rest of the world. Thirdly, the perspective hinders the development of talent and skills among people. Therefore, the governments that restrict foreign trade have low annual and per capita incomes. The population is often desperate and in need of help.
Nevertheless, government ought to protect local businesses and institutions from foreign competition. The foreign trade has an expanded market than domestic trade. When a country’s businesses go global, they get competition from similar businesses in the global market. The danger with this is that smaller businesses can easily be dwarfed or phased out of the market by bigger and established countries. For instance, a company like Coca-Cola can easily phase out any beverage company that is smaller than it if governments do not step in to protect them. The government can do so by ensuring that the local companies have their local markets protected. Moreover, the government can offer the local companies financial or any other support that can make them strong. When government does this, it shows its commitment to ensure that local businesses thrive.
The government also works hard to ensure that local business learn a lot from the international businesses. Therefore, the government will require that the big and lucrative businesses from other countries benefit the local businesses and people. For example, it is often a government intention to ensure that international businesses share success ideas with the local businesses. They can ensure this happens by holding conferences, debates, trade fairs and even training employees from the local business for a given length of time. Through this, the government ensures that the local business persons and people get ideas and knowledge on how to remain relevant in the international markets., Moreover, the government ensures that the local talent, skills and knowledge are boosted to match the international standards. The government is thus able to boost the ability of the local people and business persons to contribute towards the country’s annual income. The foreign trade will be used as a catalyst to spur growth and prosperity in the country.
Conclusion
It is important for governments to support foreign trade. There are countries that need supply of some goods and services as they do not have enough of them. Therefore, foreign trade allows countries and people to share services and products and lead good lives. The people also get skills, knowledge and insights on how to approach new problems and run businesses (Mojsovskia,2017). The government benefits a lot from an educated and skillful population in that every individual will be productive in all they do. The fact that foreign trade allows people from different parts of the world to interact makes it possible for a country’s culture to be enriched. As a result, government should encourage foreign trade.
References
Gnangnon, S. & Roberts, M. (2017). Aid for Trade, Foreign Direct Investment and Export Upgrading in Recipient Countries. Journal of International Commerce, Economics and Policy, 8 (2), 36.
Mojsovskia,S. (2017). The Impact of Foreign Direct Investment on the Macedonian Foreign Trade. Economic Development,19 (2), 35-48.
Song, M & Zhou, Y. (2016). Quantitative Analysis of Foreign Trade and Environmental Efficiency in China. Emerging Markets Finance and Trade, 52 (7), 1647-1660.
